Expenses voluntarily incurred by the insured for the preservation of property; this would include payments under pre-arranged salvage contracts. Sue and labour are distinguished from salvage charges leading to awards to salvors acting independently of any contract. See SUE AND LABOUR CLAUSE.
Insurance Encyclopedia
Sue and Labour Charges for Loss
Sue and labour charges are expenses incurred by the insured or his servants or agents to avert or diminish any loss. Under Common Law an owner of property is expected to take all measures to avoid or minimize his loss, in spite of existence of insurance protection; in other words, he is obliged to “act as if he is uninsured:. These charges are paid as an incentive to the insured to take such measures as to avoid or minimize the loss. The essential features of Sue and Labour Charges are (a) An insured peril must occur. Then only the charges incurred to avoid or minimize the loss are payable (b) The charges must be incurred short of destination i.e., at an intermediate port. (c) The charges must be incurred for the benefit of particular subject matter insured. If incurred for the common adventure, they may be general average expense. (d) The charges must be incurred only by the assured, his factors, his servants or assigns. Thus, salvage charges which paid to third parties are not sue and labour charges.
Sue and labour clause
Clause in the Institute Cargo Clauses and in the International Hull Clauses reminding the insured to act at all times as though uninsured. The clause makes sue and labour charges recoverable from the marine insurer in addition to any admissible claim even a total loss claim as it is deemed by the Marine Insurance Act, s.78(1), to be a supplementary contract.
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A provision in marine insurance obligating the assured to do things necessary after a loss to prevent further loss and to act in the best interests of the insurer.
Suez Canal Clause
A clause in a Marine Hull policy which provides that grounding in the Suez canal, Panama Canal and other named locations shall not be deemed to be a stranding.
Sufferance bond
A bond given on behalf of the owners of a sufferance wharf as security for the payment of customs duty.
Sufferance Wharf
A wharf where the Custom Authorities allow the loading and discharge of dutiable goods.
Sufficient financial capacity
The Insurance Mediation Directive requires that all insurance intermediaries should have sufficient financial capacity. The aim is to protect customers against the inability of an intermediary to transfer the premium to the insurer or to transfer the amount of a claim or return the premium to the insured. The implementation must take one of the following forms: the transfer of customers’ money through strictly segregated accounts; setting up a guarantee fund; payments to the intermediary being treated as payments to the insurer but payments to the intermediary not being treated as payments to the insured; intermediaries to have permanent financial capacity equal to 4 per cent of the sum of the annual premiums received, subject to a minimum of €15,000 (£9,400). The UK may adopt any combination of these four measures.
Suhana Safar Insurance Policy
The policy is designed to cover the risks of Personal Accident and Loss of or damage to baggage of the insured persons including accompanied family members from the time they leave their declared place of departure, continues through the intended places of travel and terminates on the date of scheduled return declared or on the actual return to the place of departure whichever is earlier. Cover is valid for transit period subject to a maximum of 60 days. The cover can also be issued to people who are going on official tour, etc. The cover includes incidental local travel also. Emergency expenses cover. In addition to the above the insured will be indemnified up to Rs. 1,000 per insured person towards actual emergency incidental expenses necessarily incurred arising out of an accident resulting in a valid claim under PA Section.
Suicide clause
Life insurance policy provision that states if the insured takes his or her own life, then the proceeds of the policy will not be paid.
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UK: Clause in a life insurance policy enabling the insurer to avoid the contract if death occurs by suicide within a specified time (one or two years of inception). Some offices omit the exclusion altogether.
Suit
See: lawsuit .